The total project cost is estimated about ¥144 Billion* with the eligible loan portion is about ¥120 Billion, and the rest of the project cost will be funded by National and City Budget. The project cost will be shared between National Government (42%) and City Government (58%). The fund will then be channeled to PT MRT Jakarta through DKI Jakarta as the implementer and operator of the project. As of today, we have manage to secure the loan agreement I and II, which is 42% of the eligible loan portion from JICA, that is granted to Provincial Government of DKI Jakarta. In 2009, JICA also has provided grant to do feasibility study of extension MRT corridor from Bundaran HI – Kampung Bandan (Kota) and the pre-feasibility study of MRT east-west corridor.

*For Lebak Bulus – Dukuh Atas. The total cost for Lebak Bulus-Bundaran HI is currently being calculated.

http://www.jica.go.jp/english/news/jbic_archive/autocontents/english/news/2006/000097/index.html

JBIC Signs ODA Loan Agreement with Indonesia

--Supporting Construction of a Mass Rapid Transit System for Economic Development--

1. Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa) signed a loan agreement on November 28 totaling up to 1,869 million yen with the Republic of Indonesia to finance "Engineering Services for the Jakarta MRT System Project."
2. The Project aims to increase passenger transport capacity, which will lead to less traffic congestion and more efficient freight transport, and to reduce air pollution in the Jakarta metropolitan area by constructing a mass rapid transit system (14.5 km) containing the country's first subway in the Jakarta metropolitan area. The Project will thereby improve the country's investment climate. Since the Project involves underground excavation in the heart of the city, Japan's advanced technologies, including its shield tunneling method,[1] will be utilized to minimize the surface-level construction area. The funds of this loan will be applied to engineering services for the basic design of the Project to facilitate effective project implementation.
3. The Jakarta metropolitan area has 21 million people, or about 10% of the total population. It is a concentrated area that is an important economic hub accounting for 22% of Indonesia's total industrial production. While Jakarta's position has been reflected in a sharp increase in commuters to the city center, only 2% of them are using rail service. This is attributable to such reasons as an insufficient number of trains and unpunctual due to serious congestion. Many commuters rely on buses, motorcycles and private vehicles for their means of transport.[2] The average driving speed of buses, however, falls below 10 km/h during the peak evening rush. Such serious traffic congestion has led to a deterioration in living conditions, air quality and the investment climate. By expanding the rail service, which accommodates short-distance transport in central Jakarta, the Project is expected to help alleviate traffic congestion.
4. JBIC has provided comprehensive support for Indonesia, including assistance for recovery from the economic crisis, economic and social stability, as well as economic infrastructure development underpinning economic growth led by private investment. Through the provision of ODA loans, JBIC will continue to support infrastructure development for sustainable growth in Indonesia that leads to poverty reduction.

(Click here for details.)

[1] A tunnel boring machine called a "shield" is used to excavate tunnels. This method is being used in the ongoing construction of the Tokyo Metro No. 13 Line.
[2] The composition of motor vehicles in the Jakarta metropolitan area is as follows: motorcycles, 23%; passenger vehicles, 17%; buses, 58%; and rail, 2%.

http://www.meti.go.jp/policy/external_economy/cooperation/oda/pdf/step2%28english%29.pdf

Special Terms for Economic Partnership (STEP)

The Government of Japan introduced "Special Terms for Economic Partnership"(STEP) in July 2002. STEP is expected to raise the visibility of Japanese ODA among citizens in both recipient countries and Japan through best use of advanced technologies and know-how of Japanese firms.

1. STEP Recipient Countries
Low-income countries, lower-middle-income countries, and middle-income countries to which tied aid can be extended under the OECD rules (except least-developed countries and upper-middle-income countries).

2. STEP-Eligible Projects
Projects eligible for STEP are those listed in the following sectors and fields, and, at the same time, for which Japanese technologies and/or equipments are substantially utilized.
Sectors and Fields :

3. STEP Terms and Conditions
(1)Interest Rate and Repayment Period:
*The repayment period is 40 years, including a 10-year grace period. The interest rate is currently 0.40%. Another option is a repayment period of 30 years, including a 10-year grace period, coupled with an interest rate of 0.30%. (Interest rates and repayment periods, may be updated so as to make it possible to extend tied aid under the OECD rules.)

(2)Procurement Conditions:
*Prime contractors must be Japanese firms. Joint ventures (JV) with the firms incorporated and registered in recipient countries are also allowed to be a prime contractor under condition that a Japanese firm is a lead partner. Subcontractors may be from any country.

(3)Country of Origin of Goods and Services to be Procured under STEP:
*Not less than 30% of the total amount of contract(s) (excluding consulting services) financed by STEP loan must be accounted for by either (a) goods from Japan and services provided by Japanese firms, or (b) goods from Japan only, according to the nature of project.

(4)Coverage Ratio:
*STEP covers up to 85% of the total project cost.

(5)In order to ensure fairness in a procurement process, procurement must be audited by a third party after completion of a bidding process. This can be funded either by ODA loans or JBIC Special Assistance Facilities.